If the demand curve for a good is unit elastic within a specific price range, this implies that within that price range the
A) consumers do not react to a change in price
B) quantity demanded remains unchanged
C) good has no substitutes
D) good has no complements
E) percentage change in the quantity demanded equals the percentage change in price

Question

Quizplus · Accepted Answer

When a demand curve is unit elastic, it means that the percentage change in quantity demanded is exactly equal to the percentage change in price, indicating a one-to-one responsiveness of quantity demanded to price changes.

If the Demand Curve for a Good Is Unit Elastic